the little bank Releases Second Quarter Earnings Today

Business Wire

KINSTON, N.C.--(BUSINESS WIRE)--

the little bank (LTLB) reports earnings results for the quarter and six months ended June 30, 2013.

The little bank (the “Company”), today announced a 14% increase in unaudited net income for the quarter ended June 30, 2013. Net income was $745,000 or $.27 per basic share compared to earnings of $653,000 or $.23 per basic share for the quarter ended June 30, 2012. After adjusting for dividends and the accretion of discount on preferred stock outstanding, net income available to common shareholders was $673,000, or $.24 per basic share for the quarter ended June 30, 2013, compared to $531,000 or $.19 per basic share for the comparable period in 2012.

Unaudited net income for the first six months of 2013 increased 7% to $1,387,000, or $.49 per basic share compared to earnings of $1,301,000, or $.46 per basic share for the first six months of 2012. After adjusting for dividends and the accretion of discount on preferred stock, net income available for common shareholders for the six month period ended June 30, 2013 was $1,271,000, or $.45 per basic share, compared to $1,058,000, or $.38 per basic share for the comparable six month period during 2012. The Bank recorded no provision for loan losses during the six month period ended June 30, 2013, and realized net recoveries of $8,000 for the six month period. The Bank recorded a provision of $420,000 for the six month period ended June 30, 2012.

Total assets as of June 30, 2013 were $303.0 million, compared to total assets of $305.9 million as of December 31, 2012, and $307.6 million as of June 30, 2012. Total loans, net of reserves, were $205.2 million and deposits were $253.9 million, representing a decrease of 2.6% and an increase of 1.5%, respectively, over the December 31, 2012 levels. On June 5, 2013 the little bank repurchased and retired the remaining $2.8 million of its preferred stock outstanding. This transaction is accretive to earnings since the Company will no longer have to pay a 5% dividend on the retired preferred stock. The little bank will remain “Well Capitalized” despite this preferred equity retirement. Currently, 2,810,996 shares of common stock are issued and outstanding.

Vincent R. Jones, President and Chief Executive Officer stated, “We were pleased to finalize our exit from preferred stock during the second quarter. As a result the Bank will retain an approximate $408,000 in capital per year for common shareholders, previously paid in preferred stock dividends.” Jones added, “Weak loan demand has driven industry wide loan pricing down to marginally profitable levels. We are optimistic that recent increases in U.S. Treasury bond yields and mortgage rates will create a lift in overall loan pricing and future net interest margins. We are particularly pleased with the Company’s loan quality as evidenced by the fact that our loan charge-off activity has actually resulted in a small net recovery.”

The little bank is headquartered in Kinston, North Carolina and currently serves the Lenoir, Wayne, Onslow, Pitt, and Craven county markets. The Bank prides itself on the special care with which it serves its customers. The Bank’s website is www.thelittlebank.com. The little bank stock can be found on the Over-the-Counter Electronic Bulletin Board trading under the symbol LTLB.

This press release includes certain forward-looking statements in reliance on the “safe-harbor” provisions of The Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially from those anticipated in any such forward-looking statements. The Company undertakes no obligation to update or revise any such forward-looking statements.

 

 

the little bank

Summary of Operations (un-audited)

(000’s omitted except per share data)

     
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012
 
Interest Income $ 2,920 $ 3,167

$

5,857

$

6,414

 
Interest Expense   427     547    

852

   

1,151

 
 
Net interest income 2,493 2,620

5,005

5,263

 
Provision for loan losses   0     170     0     420  
 
Net interest income after
Provision for losses   2,493     2,450     5,005     4,843  
`
Non-interest income 359 388 772 714
 
Non-interest expense   1,731     1,828     3,680     3,553  
 
Income before taxes 1,121 1,010 2,097 2,004
 
Income taxes   376     357     710     703  
 
Net Income 745 653 1,387 1,301
Preferred Stock Dividends (43 ) (102 ) (78 ) (204 )
Accretion of Discount, net   (29 )   (20 )   (38 )   (39 )
 
Net Income available

for common shareholders

$ 673   $ 531   $ 1,271   $ 1,058  
Net Income available

per basic common share

$ 0.24   $ 0.19   $ 0.45   $ 0.38  

the little bank

Balance Sheets

(000’s omitted except per share data)

June 30,   December 31,   June 30,
2013 2012 * 2012
(un-audited) (un-audited)
Assets
 
Cash and due from banks $ 4,468 $ 6,267 $ 3,336
Overnight investments 11,106 6,160 5,311
Investment securities AFS 69,610 69,820 87,109
 
Loans 209,270 214,728 202,576
Less Allowance for loan losses   (4,081 )   (4,073 )   (3,973 )
Net Loans 205,189 210,655 198,603
 
Other Real Estate Owned 520 537 887
Other Assets   12,155     12,444     12,318  
Total Assets $ 303,048   $ 305,883   $ 307,564  
 
 
Liabilities & Stockholders' Equity
 
Liabilities
Deposits $ 253,854 $ 250,098 $ 251,115
FHLB Advances 19,500 23,500 20,000
Other liabilities   703     559     421  
Total liabilities 274,057 274,157 271,536
 
Stockholders' Equity
Preferred stock, Series A & B $ 0 $ 2,763 $ 7,749
Common stock, no par value 25,447 25,573 24,404
Retained earnings 3,718 2,658 3,083
Accumulated other comprehensive income (loss)   (174 )   732     792  
Total stockholders' equity $ 28,991   $ 31,726   $ 36,028  
 
Total liabilities and stockholders' equity $ 303,048   $ 305,883   $ 307,564  
 

* Derived from audited financial statements

Contact:
the little bank
Doyle M. Thigpen, Chief Financial Officer
252-317-2804

View Comments